Rise in Demand for Optical Communication and Networking Equipment

Posted by Tom C on March 22nd, 2021

The global optical communication and networking equipment market size was valued at USD 18.9 billion in 2020 and is projected to reach USD 27.8 billion by 2025; it is growing at a CAGR of 8.0% from 2020 to 2025. Rising adoption of cloud-based services and virtualization services all over the world, increasing data traffic due to increased internet usage, and growing number of data centers are the factors driving the optical communication and networking equipment industry growth.

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WDM technology to dominate the Optical Communication and Networking Equipment Market

WDM technology-based optical communication and networking equipment accounted for the largest market share in 2019 The development of ROADM-based WDM networking solutions is one of the emerging trends in the global optical networking and communications market. Manufacturers are investing huge capital in building WDM ROADM-based optical equipment so that they can provide faster and higher transmission capacity networks to their customers. Therefore, WDM technology is expected to continue to hold the largest market share during the forecast period.

The market of greater than 100 Gbps data rate to grow at highest CAGR during the forecast period

The market for optical communication and networking equipment with greater than 100 Gbps data rate is projected to grow at the highest CAGR during the forecast period. With the rapid development of 5G and high-performance services brought by cloud networks, the demand for higher bandwidth devices with a data rate of greater than 100 Gbps is expected to grow during the forecast period. Optical communication and networking devices with greater than 100 Gbps data rates are designed for providing data security in high-capacity broadband networks, short-haul enterprise and campus networks, high-bandwidth connectivity for DCI and cloud computing, and metro and long-haul network applications up to 2,500 km.

The optical communication and networking equipment market in APAC to grow at the highest CAGR during the forecast period

APAC is projected to hold the largest share of the market, in terms of value, during the forecast period, Asia Pacific is a major hub for consumer electronics, automotive, and industrial verticals. This region has become a global focal point for significant investments and business expansions. Users in this region have upgraded their connectivity solutions from 3G to 4G technology. Asian markets encourage the development of 5G mobile technologies, with commercial deployments planned in Japan and China by 2020.

Key Market Players

The major players in the optical communication and networking equipment market are Huawei Technologies Co. (China), Nokia (Finland), Cisco (US), Ciena (US), ADTRAN (US), ZTE (China), Broadcom (US), Finisar (US), Fujitsu Optical Components (Japan), Infinera (US), ADVA Optical Networking (Germany), NEC (Japan), Juniper Networks (US), Ericsson (Sweden), Corning (US), and Coriant (US). The key innovators in the market are Lumentum Operations (US), Calix (US), Oclaro (US), Arista Networks (US), NeoPhotonics (US), Mitsubishi Electric (Japan), and ECI Telecom (Israel).

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Tom C

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Tom C
Joined: July 2nd, 2020
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